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URL:  https://boards.fool.com/that-was-part-of-my-point-the-insurance-company-31006440.aspx

Subject:  Re: health care Date:  12/5/2013  9:04 AM
Author:  Hawkwin Number:  1913240 of 2381069

That was part of my point, the insurance company was able to carry our account with only a 3% fee.

Do you not understand that profit and administrative fees are not the same amount?

A business can generate profits in excess, or in addition to their administrative fees.

If your direct costs are $100 and your admin fees are 3%, then your total costs are $103. Profit is generally added on top of that.

Here is an easy calculation for you on it.

http://mathcentral.uregina.ca/QQ/database/QQ.09.10/h/brian2....

Don't assume the insurance company only booked 3% in profit simply because their admin fee was only 3%.
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